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March 24th, 2019 by Marco Santarelli
Los Angeles Real Estate Market 2019 Insight And Statistics
If you’re keen to invest in your future in the Los Angeles real estate market 2019 and buy before prices become out of reach, you must peruse till the end. Los Angeles is home to around four million people. It is the largest city in California and the second largest in the United States. The L.A. metropolitan area with over 13 million people rivals New York in population as the largest in the country.
However, being a huge real estate market is not reason enough to invest here. If you are a home buyer or real estate investor, Los Angeles definitely has a track record of being one of the best long term real estate investments in the US through the last ten years. However, not every real estate investor wants to enter the most expensive and competitive Los Angeles real estate market.
The California housing market is one of the hottest and most profitable in the United States. In California, the Los Angeles housing market is considered as one of the premier housing markets for both investors and homeowners. As house prices remain high in Los Angeles, it is the right time for wealthy investors to invest in Los Angeles investment properties.
For buyers, the affordability is dropping and only 30% of LA county residents own a home. Price are so high and out of reach for many buyers – many consider LA homes grossly over-priced. While Los Angeles home prices may be increasing slightly over the next year, the fact remains that there are many homes available at fair prices. Let’s take a close look at the Los Angeles real estate market trends and forecasts for 2019 & 2020 find out why is it one of best real estate markets to invest in California.
Los Angeles Real Estate Market Forecast 2019, 2020 & 2021
The median home value in Los Angeles is $694,200 on Zillow. Los Angeles home prices have gone up 4.5% over the past year and their Los Angeles real estate market prediction is that the prices will rise 3.0% within the next year. The median list price per square foot in Los Angeles is $523, which is higher than the Los Angeles-Long Beach-Anaheim Metro average of $430.
According to several real estate experts, the home values in Los Angeles will continue to rise in 2019, but at a significantly slower rate than the nationwide average. That is good sign for buyers and investors as far as affordability is concerned as nearly three in four residents of Los Angeles County can’t afford to buy a median-priced home in the area. The real estate appreciation rate in Los Angeles is predicted to remain modest throughout 2019.
The median price of homes currently listed in Los Angeles is $799,900 while the median price of homes that sold is $655,700. The median rent price in Los Angeles is $3,500, which is higher than the Los Angeles-Long Beach-Anaheim Metro median of $3,200.
According to LittleBigHomes.com, the Los Angeles real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Los Angeles real estate market trend prediction is 84%. Accordingly, they estimate that the probability for rising house prices in Los Angeles is 84% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Los Angeles Housing Market Forecast 2019 – 2021
The Los Angeles housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Los Angeles housing market trend prediction for Los Angeles is 78%. Accordingly, LittleBigHomes.com estimates that the probability for rising house prices in Los Angeles is 78% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were
Check this page each quarter for updates to the Los Angeles Real Estate Market Forecast.
Los Angeles Real Estate Market Trends
In 2018, the home prices in Los Angeles reached record heights, climbing to levels far above those recorded in the years leading up to the Great Recession. The Los Angeles real estate market trends in 2019 indicate an increase of $40,000 (5%) in median home sales and a 5% rise in median rent per month over the past year.
The average price per square foot for this same period rose to $655, up from $613. Trulia has 9,306 homes for sale in Los Angeles, CA, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Los Angeles for Dec 14 to Mar 13 was $805,000 based on 1,545 home sales. Average price per square foot for Los Angeles was $655, an increase of 7% compared to the same period last year. The median rent per month for apartments in Los Angeles for Feb 18 to Mar 18 was $4,195.
In Los Angeles and Orange counties, year-over-year price increases peaked at 8.2% in April 2018 and have declined every month since. In October, the home prices in Los Angeles and Orange counties rose 5.5% over the previous year, according to the latest available data from the closely watched S&P CoreLogic Case-Shiller index. A big factor, according to experts, is that many would-be buyers are increasingly priced out.
A big factor, according to experts, is that many would-be buyers are increasingly priced out. But real estate agents also say a growing number of people who could buy, like Saavedra, have decided they don’t want to pull the trigger at the top.
As per the real estate company named Redfin, the Los Angeles housing market is very competitive. Homes in Los Angeles receive 2 offers on average and sell in around 49 days. The average sale price of a home in Los Angeles was $670K last month, down 1.0% since last year. The average sale price per square foot in Los Angeles is $453, up 2.0% since last year. Homes typically receive 2 offers. Homes for sale in Los Angeles, CA sell for about 1% below list price and go pending in around 49 days. Hot Homes in Los Angeles, CA can sell for about 1% above list price and go pending in around 21 days.
Los Angeles Housing Market Statistics
There are 6,138 homes for sale, ranging from $4.8K to $245M on Realtor.com. 481 of which were newly listed within the last week. Additionally, there are 3,852 Los Angeles rental properties for sale, with a range of $1 to $1.4M per month. In December 2018 the housing market in Los Angeles, CA was a seller’s market, which means there were roughly more buyers than there were active homes for sale. Seller’s markets are generally more advantageous for sellers rather than buyers.
In December 2018, the median list price of homes in Los Angeles, CA was $879.5K, trending up 12.9% year-over-year. The median listing price per square foot was $529. The median sale price was $710,000. On average, homes in Los Angeles, CA sell after 49 days on the market. The trend for median days on market in Los Angeles, CA is flat since last month, and flat since last year.
The median list price in Los Angeles is $980,000 on Movoto.com. The median list price in Los Angeles went down 1% from February to March. Los Angeles’s home resale inventories is 2,588, which increased 5 percent since February 2019. The median list price per square foot in Los Angeles is $644. February 2019 was $645. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in March.
Los Angeles Single Family And Multi-Family Homes
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Los Angeles is $638,804 and it is above national average. However, the Los Angeles home prices are still cheaper as compared to some of the most expensive areas in the California real estate market. Large apartment complexes or high rise apartments are the single most common housing type in Los Angeles, accounting for 46.16% of the city’s housing units.
Other types of housing that are prevalent in Los Angeles include single family detached homes ( 38.63%), duplexes, homes converted to apartments or other small apartment buildings ( 8.60%), and a few row houses and other attached homes ( 5.97%).
Cities with mostly row houses, apartments, and other high density housing types are relatively uncommon, and characteristic of compact cities that frequently have a downtown or other neighborhoods where amenities are within walking distance and a lot of street life can be seen.
People in Los Angeles primarily live in small (one, two or no bedroom) units, chiefly found in large apartment complexes or high rise apartments. Los Angeles has a mixture of owner-occupied and renter-occupied housing.
Currently, there are 5,265 single family homes for sale in Los Angeles, CA on Zillow. These include upcoming potential listings. Additionally, there are 1,801 single family homes for rent in Los Angeles, CA. Data gathered by the California Association of Realtors suggest that single family homes in particular are fetching far lower prices now than they were during the summer, when Los Angeles real estate values reached an all-time high.
The association reports that the median price of an existing (not newly built) single-family home in LA County was $566,010 in January – up less than half a percent in the last year. Prices for all types of homes typically dip during the winter months, but this year’s seasonal swing has been especially dramatic for Los Angeles single family homes.
Los Angeles CA Foreclosures And Bank Owned Homes
Foreclosures will be a factor impacting Los Angeles home prices in the next several years. In Los Angeles 0.5 homes are foreclosed (per 10,000). This is greater than the Los Angeles-Long Beach-Anaheim Metro value of 0.4 and also lower than the national value of 1.2, according to Zillow.
The percent of delinquent mortgages in Los Angeles is 0.7%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Los Angeles homeowners underwater on their mortgage is 4.3%, which is higher than Los Angeles-Long Beach-Anaheim Metro at 4.1%.
There are currently 1,260 properties in Los Angeles, CA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 2,142. In February, the number of properties that received a foreclosure filing in Los Angeles, CA was 2% lower than the previous month and 6% higher than the same time last year.
Home sales for January 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home was $0. The median sales price of a foreclosure home was $0, or 0% higher than non-distressed home sales.
Los Angeles Home Prices And Real Estate Appreciation
Los Angeles real estate appreciated 52.19% over the last ten years, which is an average annual home appreciation rate of 4.29%, putting Los Angeles in the top 10% nationally for real estate appreciation, according to NeighborhoodScout’s data. Los Angeles real estate appreciation rates are so strong that despite a nationwide downturn in the housing market, Los Angeles real estate has continued to appreciate in value faster than most communities.
Looking at just the latest twelve months, Los Angeles appreciation rates continue to be some of the highest in America, at 8.97%, which is higher than appreciation rates in 88.29% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Los Angeles.
Los Angeles real estate appreciation rates in the latest quarter were at 2.08%, which equates to an annual appreciation rate of 8.60%. Relative to California, their data show that Los Angeles’s latest annual appreciation rate is higher than 60% of the other cities and towns in California.
Home values in Los Angeles are up less than 3 percent since last year. After years of steady escalation, home prices in Los Angeles County are tapering off, according to a new report from CoreLogic. They find that the Los Angeles county’s median home price was $579,500 in January, down slightly from December’s median price of $581,500.
That’s a 2.6 percent increase over the same time last year. By this comparison, prices shot up nearly 8 percent between January 2017 and January 2018.
10 Best Neighborhoods In Los Angeles For Real Estate Investment
There are 1,128 schools in Los Angeles, CA. There are 392 elementary schools, 192 middle schools, 190 high schools and 354 private & charter schools. There are 82 neighborhoods in Los Angeles. Brentwood has a median listing price of $3.2M, making it the most expensive neighborhood. East Los Angeles is the most affordable neighborhood in Los Angeles, with a median listing price of $530K.
These are the 10 best neighborhoods in Los Angeles to invest in real estate because they have the highest real estate appreciation rates (List by Neigborhoodscout.com).
Is Los Angeles The Best Place In California To Invest In Real Estate?
Investing in real estate is touted as a great way to become wealthy. Is Los Angeles rental property good for investment? If you are looking to buy Los Angeles investment properties, then you must read this. These things make Los Angeles real estate market stand out when it comes to choosing a place to invest in 2019 and beyond. We have already discussed the Los Angeles housing market forecast for answers on why to put resources into this sizzling market in 2019.
The home prices in the Los Angeles housing market will be on an upswing all through 2019. The Los Angeles home prices have been trending up 12.9% year-over-year. So you should consider investing in Los Angeles rental properties sooner, to avoid higher home prices down the road.
Here are the top 10 reasons to invest in the Los Angeles real estate in 2019.
1. It Is a Good Time to Buy
The Los Angeles housing market has been hot for years. In fact, it hit record highs in 2018. However, the market is starting to cool. Prices have been declining since the record highs seen in the summer of 2018. Selection is growing, too, because so many buyers think prices remain at the peak. While home prices may still go up, home prices in the Los Angeles housing market are predicted to go up at only 5% annually, well below the projected 7.7% national average.
2. Deals Can Be Found
Distressed buyers exist in every real estate market. The 8% decline in the number of homes sold is creating stress for many owners of Los Angeles real estate. They’re starting to ask for less just to get the property sell. This explains why Los Angeles has seen a wide gap form between the listing price of a home and the price that it sells for.
If you do find an ideal property in the Los Angeles housing market, the increased selection of properties means you’re far less likely to end up in a bidding war.
3. Foreclosures Can Yield Significant Savings
Foreclosures can be a great way to snap up Los Angeles real estate at a bargain price. Foreclosure rates, though, vary wildly. Around one out of every six hundred homes in Lake Hughes, Topanga and Santa Fe Springs are in foreclosure. That’s five times the average rate for Los Angeles County.
Note that for every home in foreclosure with the bank, there is probably another that is approaching that point and would be sold at a discount by a distressed seller who wants to avoid foreclosure. In distressed neighborhoods, fix and flip may be an option. So is buying the Los Angeles real estate cheap and renting it out in a market starving for affordable rental units.
4. Los Angeles Has Relaxed Rent Control on Homes
Rent control applies to many Los Angeles rental properties if they are multi-family units. Single family detached homes rarely fall under the rent control ordinances. The only exception is when there are two or more units on the property that are rented out; then rent control rules are likely to apply.
The simplest solution to this is to only by single family Los Angeles rental properties, never a property with a separately rented granny flat or upstairs apartment you could rent out, as well.
5. Los Angeles Rental Properties Give Strong Income
In the Los Angeles real estate market, a one bedroom apartment rents for around $1400. A two bedroom apartment is rented out for around $1800. The average rent people pay is around $2400 a month. You would be able to charge much more for a three or four bedroom Los Angeles rental home. For comparison, these rental rates are roughly twice the national average.
Nor will the economic headwinds affect this much. Whether it is immigrants moving to Los Angeles for the opportunity or young Americans moving to L.A. for the coolness factor, housing demand continues to grow. This explains why rental rates on Los Angeles rental properties are going up 7% a year.
6. Construction Isn’t Meeting Housing Demand in LA
The Los Angeles housing market has seen a bump in residential construction. This has helped to satisfy some demand from renters. However, due to increasing demand, the new supply hasn’t brought prices down. It simply means that the vacancy rate in Los Angeles remains around 3% instead of falling any lower. This also suggests that any new wave of construction will at most result in rental rates remaining steady instead of causing them to fall.
7. Geography Limits Supply
The Los Angeles metropolitan area is perched between the ocean and the mountains. You obviously can’t build on water. There’s only so far you can build into the hills when mudslides and earthquakes limit how much you can build there. The Los Angeles real estate market is further constrained by the vast national parks around L.A. like the Angeles National Forest. These areas simply cannot be turned into residential areas.
8. Renting in Los Angeles Is Becoming a Way of Life
Home ownership rates in California have been declining for years. The sea change has been the growth of renting among the middle and upper class. For example, a third of Los Angeles residents with incomes over $100,000 rent instead of own.
Baby Boomers downsizing their homes choose to rent condos and homes that others maintain. Millennials who have a good income often say their parents lose their home in the Great Recession and choose to rent instead. This is driving demand for luxury Los Angeles real estate market, whether condos, apartments with concierges, or luxury homes rented instead of purchased so that the resident can easily move if they lose their jobs.
Only San Jose and San Francisco have more high income residents that rent than the Los Angeles real estate market.
9. Jobs Keep People Coming
Los Angeles has an unemployment rate of around 4%. What makes Los Angeles unique is the employment market. Want to work in Hollywood? Move to L.A. Want to work for a production company or in fashion? Come to L.A. If rent is too high, share an apartment or single family home with friends.
10. The Military Adds Renters to This Market
Any military base will pump renters into a real estate market. The Los Angeles real estate market is simply notable for having a large military population but a job market so diverse that the closing of a base won’t hurt the area’s home prices overall.
The Los Angeles Air Port Base, Edwards Air Force Base, and smaller facilities dump many renters into the Los Angeles housing market. Those with families often choose to rent Los Angeles rental properties instead of live on base. On top of that are defense contractors like Raytheon in Long Beach and El Segundo who pay people a premium to live here.
Los Angeles Real Estate Investment
Maybe you have done a bit of real estate investing in Los Angeles, CA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you invest wisely, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Los Angeles, CA. California has the 6th largest economy in the entire world. This is largely driven by its innovative production, the heavy tech sectors in the state, and more. The Los Angeles real estate market has many points in its favor beyond its sheer size. The strong market fundamentals make the Los Angeles housing market a good place to invest if you’re looking at buying real estate in California.
Buying an investment property is different from buying an owner-occupied home. Investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business.
Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
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Which Are The Other Best Real Estate Markets In California?
1. San Jose Real Estate Market in California
Apart from the Los Angeles real estate market, you can also invest in another hot market in San Jose. San Jose is part of Silicon Valley, a place where $100,000 a year or higher salaries from competing tech firms has driven up the cost of real estate. But what about the San Jose housing market itself? San Jose is the third largest city in California, home to roughly a million people. It has the highest cost of living of any area in the U.S., and it is one of the most expensive housing markets in the country.
If you want to invest in the San Jose rental properties, you may not need to buy and renovate. Instead, if you know of industrial or commercial properties near major employers they may need to convert to employee housing, you could buy now and hold until it sells. If that doesn’t happen, you could still turn it into co-working space.
In January, 2018, Redfin ranked the ten hottest neighborhoods in the United States. Nine of the ten were in San Jose. When single home prices fall from 1.2 million to 1 million, homes now sit on the market for several days instead of being snapped up immediately. The median price for a new home or condo was $750,000 in 2018, down from a record of nearly $800,000 a few months prior. If you want to invest in the San Jose housing market, you should do it now while things are – relatively speaking – affordable.
2. San Diego Real Estate Market in California
The San Diego real estate market offers an ideal mix of limited supply, high demand and excellent income potential. If you’re going to invest in California, it needs to be in San Diego. The San Diego real estate market has been ranked among the ten most expensive real estate markets in the country, though it ranks below several other West Coast cities.
This creates massive demand for San Diego rental properties by those who simply cannot afford to buy homes. The rental market will continue to grow as the city grows an estimated 500,000 by 2050, adding tens of thousands each year.
San Diego also has many tourist attractions. Balboa Park is home to the San Diego Zoo, the Air and Space Museum, the Natural History Museum, the Desert Garden, the local youth Symphony, a Japanese garden and a golf complex. There’s a SeaWorld in San Diego, an MLB stadium, the USS Midway Museum and the San Diego Zoo safari park.
On top of this is the mild weather and proximity to the beach. Any San Diego rental properties in easy reach of these attractions command a premium on rental sites like AirBnB. Demand for rentals in the San Diego real estate market soars during Comic-Con, one of the biggest comic conventions in the country.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Good time to buy / price predictions
Deals can be found
Construction and demand
Renting as a way of life
Market Data, Trends and Forecasts https://www.zillow.com/losangeles-ca/home-values https://www.trulia.com/real_estate/Los_Angeles-California https://www.littlebighomes.com/real-estate-los-angeles.html https://www.redfin.com/city/11203/CA/Los-Angeles/housing-market https://www.realtor.com/realestateandhomes-search/Los-Angeles_CA/overview https://www.movoto.com/los-angeles-ca/market-trends https://www.movoto.com/guide/los-angeles-ca/los-angeles-real-estate-market-trends https://www.neighborhoodscout.com/ca/los-angeles/real-estate https://la.curbed.com/2019/2/27/18243317/los-angeles-home-price-real-estate-report
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